This is a guest post from David Aw from TradeForex4Freedom.
Since the late nineteen hundreds, the Internet has emerged to be a revolution force that has changed how people all over the world communicates and interact with one another. The financial market has since evolved from the “bucketshop” where you had to go to a shop by the street to make calls to open a position while making decision base on a ticker tape from a small teller machine to the current operation. With a click of a mouse you can open and close trade while watching live charts from your laptop within the comfort of your home.
Today thanks to the Internet, business can be made online with little or no capital. Trading itself is a business which you can easily start with little capital or no capital (using credit card but that is a skill beyond the scope of this post). And this itself has open new doors for people on the ground to leverage the Internet to extend their reach to the world.
[Free Ebook] How should you invest your first $20,000?
We asked 14 Singapore finance bloggers to share what they would do if they could go back in time and invest their first $20,000. They can no longer rewind time, but you can learn from their experience and hopefully start with a better footing.
You can travel anytime you want when you take signals from the weekly timeframe and profit from the daily charts and travel anywhere in the world as long as you are connected. Millions of people are now trading full time working in their pajamas from home. Wouldn’t you want like to take a piece of this action for a once in a lifetime opportunity?
I have been learning the ropes of trading since 2006 and I can tell you it is not smooth but I manage to squeeze my know-hows into this first 7 millionaire secrets you can use to up your trading edge. Listen well.
1. Learn More Earn More
Do you know what is the shortest way to tread the path of being a successful trader? Learn from those who had done it of course. Take for an instant a successful trader‘s lifetime of experience and knowledge condense in an autobiography. Is not a pill like the show Limitless but is close, imagine absorbing a lifetime of trial and error in just a few hours. Now imagine if you invest just 1 book a month, in less than a year you would have in your grasp 10 different ideas and strategies of those successful traders to confront the market.
2. Higher Leverage More Money
I’m not talking about the leverage some brokers promised you like 400:1. I’m talking about using the Internet to search for information to validate your trading calls. Information that had once been exclusive to paid subscribers are easily available with the click of the mouse and best of all most of them are free. Google a search giant has made it so easy to search for how-tos and who’s who and what’s what that the print media like newspaper seems slow.
Best of all web 2.0 has introduce Youtube which gives a whole new meaning of recorded video. You can access the latest news, recorded conferences and closed broadcast by the congress of some international hosting.
Social trading is the new trend that has hit the spot for most new traders. I mean you don’t even need to learn to earn, you just need to pick traders that have outstanding equity curve and set your trading account to copy their trade calls. If they go long, your broker would do the same to your position. If they close with a profit, you be smiling too.
Making money online this way using more leverage has resulted in less time and lesser effort.
3. You Must Believe
I believe you have heard of Anthony Robbins if not pick one of his book Unlimited Powers and you will know what I mean. Your past regret came from some bad experience which creates a negative behavior that propels you to take negative action. So you see your thoughts are very powerful if you think you can you will fulfill it likewise if you think you can’t more or less you will create that belief.
There is no truth to the 95% traders loses money myth that has been circulating around the trading world only belief. Even so you can ignore the judgment that you will be the 95% and up your standard by conditioning your mindset and see yourself to be that 5%.
4. Money Is Nothing But Points In The System
I got baffled by this even till today. You see in any trading vehicle, the money in your account is the reason why you can trade. No money no chips to exchange with the broker. Many new traders trade with life savings or insurance premiums or money that cannot be used thus they develop methods which are detrimental to their trading account.
Most commonly employed are keeping losing position open despite a more then 20% drawdown. Another one would be once a position had been in the positive they rush to close the trade only for the trade to jump even higher at their direction. Take the time to learn to trade demo if you can’t afford to play with money you can’t lose. As well as take up a second job to pile up your “grubstake”.
And lastly learn to see the money in your account as points you need to hit per month, do not narrow your focus on per trade as it will affect you emotional and physically.
5. Abundance Mentality
The trading industry has been around since the cowboy years and it will be here for the next decades. Do not portray “Kiasu-ism” or better known as fear of being left out. I have been in trades which I chase the trends only to have the trend pullback and reverse leaving me alone at the top. If the trend has to go let it breakout and wait for a pullback most often price will pull back and let you take the next wave however if the trend does ride far you can wait for the next session or cycle. It will be here.
Do not allow lack and scarcity to blur your vision as a profitable trader, cash is king. As long as you don’t open a trade which you are not sure of, you will not expose yourself to unnecessary risk and that itself is skilled highly overlook.
6. Be Grateful
This has got to be one of the highly recommended mindset that you got to have in order to receive more. Be grateful, shown graciousness to person and things and the law. When you show the universe you are grateful, your level of patience would increase and you tend to take things slowly. Not rushing or pouncing or switching the channels so fast so many times.
Write down at least 20 things you are grateful for, yes now write it down. You must be asking what would this little insignificant task be one of the millionaire secret that I can use in my trading?
Well you see when you develop the habit to be grateful, you create patience and the more you wait the merrier. Your action to close a trade when it is positive would be reduce thereby creating the opportunity for more profits also the opposite is true, if you are wrong in the trade you be humble to accept you are wrong in the market direction and take your losses.
Of course if you are happy to get out with a small profit or worst a breakeven, you would foster the mentality that you got out at least with a small profit and won’t beat yourself up if the profits turns big if you hadn’t close it earlier.
7. Take Up Responsibility
I read from somewhere about a quote that says,
“You Can Be Rich, Or You Can Be A Victim. You Can’t Be Both.”
Retail trading is a very solo business, unless you work for an institution chances are only you are alone in front of your screen watching price tick up and down for several hours straight. There will be times you will have winning trades and losing streaks. But you cannot pat yourself on the shoulder when you are right and point fingers at others when you are wrong.
Accept full responsibility for any outcome once you put up a trade. Halt the excuses, stop the complains and scrub the blaming game. Profit or loss you have to learn from your trade only then would you be able to inch higher to be where you wish to be.
So There You Have It
The above are my 7 years of experience as a forex trader I have 14 more untold secrets which I have yet disclose. Visit my blog, subscribe to the newsletter and be updated with more millionaire secrets.
About David Aw
David is an aspiring forex trader with a particular interest in personal development and how it relates to trading successfully. He runs TradeForex4Freedom a blog that educates you about following the trails of the smart money and how to profit from it.